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PepsiCo hit by rising input costs, but no price hike yet

PTI     September 28, 2011
Global beverages and snacks major PepsiCo on Wednesday said high raw material prices are putting pressure on its overall cost structure, though it ruled out any increase in the price of its products in the immediate future.

"Clearly, like everyone else, we are facing pressure (because of high inflation). Our attempts are to ensure maximise productivity and minimise the impact of passing to consumers," PepsiCo India Chairman Manu Anand told reporters on the sidelines of a CII event.

However, he said the company has taken price increases of some of its products across various pack sizes to offset the high input cost.


"Frankly speaking, I don't think the problem of inflation going away even in 2012. So its ongoing," he added.

Apart from prices increases taken in the past to counter high input costs, the company is also formulating cost-efficient ways to reduce the impact of surging raw material prices, particularly on packaging.

"We are focusing much more on productivity and just trying to see what all we can take out on non-value cost to the consumers on every area of the supply chain so that we are able to minimise the price increase. So it's an ongoing exercise," Anand said.

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